At the time of admission to one of the New Jersey Veterans Memorial Homes, a worksheet is prepared based on the current values of the “accountable assets” as well as the income that is available. A home owned by the veteran is a non-accountable asset. If the home was sold, and the proceeds are kept in a segregated account, those funds are considered “non-accountable.” However, the income generated by the Assets will be accounted. DMAVA-VHM-Application
After identifying the accountable assets, a calculation is made of the veteran’s Monthly obligation. Here’s the formula: Actual Care Cost minus VA Stipend = Monthly Maintenance Fee payment obligation, less 80% of the fixed monthly income, + 12% of remaining income or $20 whichever is more = anticipated monthly spend-down from the assets.
Based on the financial evaluation, an estimate is made of how long the spend-down will last. A financial review occurs once each year.
For an unmarried veteran, $24,000 in otherwise accountable assets can be protected and retained. Once the veteran has spent down to this level, it’s important to meet with the business office to revise the calculations, because the formula changes at this point. Now, the formula is: Gross monthly fixed income x 80%, + presumed income from the excluded house account if any, plus 12% of remaining income or $20 whichever is more (for special services fund) = gross obligation. There are then certain allowable deductions: $100 for personal needs; Medicare insurance premiums; and other health insurance premiums. The remainder is the resident’s monthly maintenance fee obligation.
Bear in mind that there are many things that the veteran is responsible to pay for on his own. The Admissions Packet contains Appendix C which is a long list of such items.Appendix C
The supplemental items and services that are listed in Appendix C will have to be paid for out of the personal needs allowance or the retained protected assets. By keeping a close watch on the spend-down and stopping at the right point, the veteran will preserve assets for the inevitable rainy day when these expenses arise.
Call for advice about nursing home admissions and applications and spend-downs … 732-382-6070
A post by Linda Ershow-Levenberg, Esq. for Fink Rosner Ershow-Levenberg Blog.
This post first appeared on VA Benefits News Archives - Fink Rosner Ershow-Lev, please read the originial post: here